6/2/16 – 5:14 A.M.
The state is not taking over financial operations in Fostoria. That was the message from a representative of State Auditor Dave Yost’s office Wednesday night. The Courier reports Belinda Miller updated Fostoria city council members on what a “fiscal emergency” designation means. Speaking at a special council meeting, Miller said, “The state has no desire to come in and take over. It is still your responsibility to take corrective action for the city.”
Fostoria has to put together a seven-member oversight committee over the next 30 days. The group will include the mayor, a council member, a member of the state budget and management office, a representative of the state treasurer’s office, and three community members. The community members will be picked by Governor John Kasich.
Once the committee is in place, they’ll have 120 days to put together a recovery plan. It has to be updated annually and also include a five-year forecast. The plan would have to be approved by city council.
If no plan is approved, the committee will take a more powerful role in the process. That could mean reducing appropriations to 85 percent of the previous year’s budget.
Fostoria was given a “Fiscal Emergency” designation in part because the budget is expected to be $800,000 in the red at the end of the year.
MORE: The Courier
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